Sidi Kerir Petrochemicals Company (SIDPEC) has signed a partnership agreement with Rungas Group, a Nigerian company, to establish a factory in Egypt that will produce butane gas cylinders for export. The factory will have an annual production capacity of one million cylinders and will use polyethylene applications from SIDPEC.
According to a statement from SIDPEC, the partners will start preparing marketing and economic feasibility studies, while Rungas Limited will obtain a license to use the required technology. The statement also said that the factory may distribute its products in the local market in the future if the technical specifications are approved by the relevant Egyptian authorities.
SIDPEC reported a net profit of EGP 1.209bn after tax for the first half of this year, an increase of 158.33% compared to the same period last year. The company’s revenues rose by 69.19% to EGP 6.563bn during January-June 2023.
Meanwhile, the Board of Directors of SIDPEC agreed to postpone the acquisition of The Egyptian Ethylene and Derivatives Company (ETHYDCO) until a strategic investor completes the study of acquiring a stake in ETHYDCO’s capital. The acquisition was planned as part of SIDPEC’s expansion strategy in the petrochemical sector.
